UK inflation stays steady

Inflation was steady in October in the UK. It remained at 2.4%, despite two interest rate rises this year.

Many economists had been expecting a rise to 2.6% because of more expensive university tuition fees.

The RPI rate, which includes mortgage payments, rose from 3.6% to 3.7% - the highest level in more than eight years.

Interest rate rise?

The majority of universities in England and Northern Ireland have introduced new maximum fees of £3000 for entrants. Much of this was offset by lower petrol prices, which fell by about 5p a litre.

As inflation stayed steady, the Bank of England is likely to hold back on introducing further interest rate rises in the near future.

Last week, interest rates rose by a quarter point to 5%. Many analysts are expecting a further interest rate rise early next year.

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